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Facebook reveals its cryptocurrency Libra

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Re: Facebook reveals its cryptocurrency Libra

#561

Post by ChainOfFools »

jpmattia wrote: post #546

Again: A ledger that is not decentralized is a bank database, not a cryptocurrency. As near as I can tell, Zuckbucks are nothing more than the JPMorganCryptocurrency but with a bigger consortium. The only difference seems to be who is given write privileges to the database.

Unfortunately the "decentralization is a spectrum" crowd has already furnished the fintech narrative with the arguments necessary to justify calling this "decentralized."

The "decentralization" quality should not be used to describe any system that doesn't exhibit a permanent, irreversible systemic trend towards greater decentralization of all the levers, concentrations and bottlenecks of power within itself over time.

For this to happen, the natural tendency toward concentration of leverage would need to introduce a proportional net cost increase to the system, rather than (as it normally would) be the mechanism by which economies of scale accrue to it.

Re: Facebook reveals its cryptocurrency Libra

#562

Post by gridlockd »

andygates wrote: post #269
gridlockd wrote: post #230

Earlier quoted context omitted.

> That sounds amazingly dystopian. I mean, that’s literally a money built on an oligarchy. By design. What's actually far more dystopian is the power that Visa, Mastercard and Paypal already have. It's not getting worse with this new thing, it's getting better . Nobody has to use Libra, but getting by without access to Visa/Mastercard/Paypal is a real problem for businesses.

Isn't it just getting one instance more of the bad stuff?

tbd

Re: Facebook reveals its cryptocurrency Libra

#563

Post by tastygreenapple »

drcode wrote: post #391
beezischillin wrote: post #215

I would never ever ever ever trust PayPal, Spotify, Mastercard and the likes to manage my money. It simply sounds like lots and lots and lots of happy little "accidents" and "bugs" waiting to happen for political opponents as they lose their livelihoods. The people who came up with the whole "Manifest Observable Behavior" and random "Suspended for Breach of Community Standards" violations have no place around anyone'…

The important question isn't what you or I will do, but what the 90% of people will do who don't care about privacy/oligopolies.

I'm sure they'll care once someone loses their zuccbuccs for saying "Men are trash".

Re: Facebook reveals its cryptocurrency Libra

#564

Post by ur-whale »

As is plenty evident with existing cryptos, the network effect is a huge part of a cryptocurrency's success (technically speaking, bitcoin is far from the best crypto out there, but it's the most popular because it was first and is nowadays the most well known).

Facebook's huge existing network will be a massive boon for Libra, however well designed it actually is from a technical standpoint: FB has direct reach into billions of people's daily life.

Good or bad, it will become a strong contender in the crypto space, unless regulators get in the way.

Re: Facebook reveals its cryptocurrency Libra

#566

Post by clearfund »

What this truly mimics is a 'security' analogous to a basket of foreign currency traded as an ETF. Once you give them US $1 it is backed by a POOL of currency from multiple countries (i.e. the other people who have traded their currency for Libra).

Once you decide to take your US $1 you will get back a different amount based on the underlying value of the pool based on the fluctuating FX market. May be >=Given they are seeking to bring in "underbanked" people (i.e. the charitable patina on this operation) there will be a focused % of currency in the pool from countries with a high % of underbanked people. Logic says this will likely be less stable currency than say the US $, etc.

Thus, your US $ will be diluted by "lesser" or more "volatile" currencies and will diminish the purchase power of your US $1. Conversely it will increase the purchase power of the lesser currency.

Thoughts?

Re: Facebook reveals its cryptocurrency Libra

#567

Post by ilaksh »

jpmattia wrote: post #546

Again: A ledger that is not decentralized is a bank database, not a cryptocurrency. As near as I can tell, Zuckbucks are nothing more than the JPMorganCryptocurrency but with a bigger consortium. The only difference seems to be who is given write privileges to the database.

Correct.

Libra coin is backed by Visa. The whole point of cryptocurrency to avoid having to go through middlemen like Visa or even require banks.

This is a way for the intermediaries to cash in on the cryptocurrency hype and squash it before cryptocurrency payments become mainstream. They want to insert their own thing that looks like a cryptocurrency but will allow them to continue to profit from and control the exchange of money.

It will become a central point of control by providing many governments a convenient one-stop shop for their spying and interference over people's business.

Re: Facebook reveals its cryptocurrency Libra

#568

Post by grey-area »

bufferoverflow wrote: post #490

What I really don't get is the regulatory aspect. They are creating a financial derivative asset/instrument. To be moved across the borders. In what freaking universe will the regulators not be all over it with endless KYC/ML rules?

They'll pay lip service to KYC etc, and then hope to do an end run around regulation by becoming ubiquitous before it can be properly regulated.

That's probably why they've chosen a blockchain (which is of negative value here technically) - to bamboozle regulators and avoid responsibility for managing it till it is too late to do anything about it.

Re: Facebook reveals its cryptocurrency Libra

#569

Post by gaogao »

ChainOfFools wrote: post #561
jpmattia wrote: post #546

Again: A ledger that is not decentralized is a bank database, not a cryptocurrency. As near as I can tell, Zuckbucks are nothing more than the JPMorganCryptocurrency but with a bigger consortium. The only difference seems to be who is given write privileges to the database.

Unfortunately the "decentralization is a spectrum" crowd has already furnished the fintech narrative with the arguments necessary to justify calling this "decentralized." The "decentralization" quality should not be used to describe any system that doesn't exhibit a permanent, irreversible systemic trend towards greater decentralization of all the levers, concentrations and bottlenecks of power within itself over tim…

Could you give an example of something with this decentralization quality as you described?
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